CELESTICA INC (CLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLS - CA15101Q2071 - Common Stock
351.41 USD
+2.75 (+0.79%)
348.53 USD
-2.88 (-0.82%)
CLS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making CLS a very profitable company, without any liquidiy or solvency issues. CLS is growing strongly while it is still valued neutral. This is a good combination! This makes CLS very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year CLS was profitable.
CLS had a positive operating cash flow in the past year.
CLS had positive earnings in each of the past 5 years.
CLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CLS has a better Return On Assets (10.85%) than 90.40% of its industry peers.
Looking at the Return On Equity, with a value of 35.33%, CLS belongs to the top of the industry, outperforming 95.20% of the companies in the same industry.
The Return On Invested Capital of CLS (21.33%) is better than 96.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is above the industry average of 9.26%.
The last Return On Invested Capital (21.33%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROIC | 21.33% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
The Profit Margin of CLS (6.35%) is better than 71.20% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
CLS has a better Operating Margin (7.33%) than 71.20% of its industry peers.
In the last couple of years the Operating Margin of CLS has grown nicely.
Looking at the Gross Margin, with a value of 12.04%, CLS is doing worse than 76.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CLS is creating value.
CLS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CLS has less shares outstanding
Compared to 1 year ago, CLS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.71 indicates that CLS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.71, CLS belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
CLS has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.97, CLS is in the better half of the industry, outperforming 77.60% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that CLS is not too dependend on debt financing.
The Debt to Equity ratio of CLS (0.37) is worse than 62.40% of its industry peers.
Although CLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.71 |
ROIC/WACC2.67
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
The Current ratio of CLS (1.47) is worse than 76.80% of its industry peers.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
CLS has a worse Quick ratio (0.88) than 86.40% of its industry peers.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.90% over the past year.
Measured over the past years, CLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.11% on average per year.
CLS shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.09%.
Measured over the past years, CLS shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
3.2 Future
Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 38.14% on average per year.
The Revenue is expected to grow by 27.74% on average over the next years. This is a very strong growth
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue Next Year26.48%
Revenue Next 2Y29.67%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CLS is valuated quite expensively with a Price/Earnings ratio of 66.55.
The rest of the industry has a similar Price/Earnings ratio as CLS.
CLS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.76.
The Price/Forward Earnings ratio is 41.84, which means the current valuation is very expensive for CLS.
CLS's Price/Forward Earnings is on the same level as the industry average.
CLS is valuated expensively when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.55 | ||
| Fwd PE | 41.84 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA is on the same level as the industry average.
CLS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.52 | ||
| EV/EBITDA | 41.02 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 43.27% in the coming years.
PEG (NY)1.25
PEG (5Y)1.38
EPS Next 2Y46.37%
EPS Next 3Y43.28%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
351.41
+2.75 (+0.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.88%
Inst Owner Change-5.31%
Ins Owners0.52%
Ins Owner Change12.08%
Market Cap40.43B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target249.34 (-29.05%)
Short Float %2.96%
Short Ratio1.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.6%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.68%
EPS beat(12)12
Avg EPS beat(12)8.66%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)6.2%
Min Revenue beat(2)5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)3.54%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)11
Avg Revenue beat(12)3.14%
Revenue beat(16)14
Avg Revenue beat(16)3.37%
PT rev (1m)28.74%
PT rev (3m)54.04%
EPS NQ rev (1m)4.73%
EPS NQ rev (3m)19.76%
EPS NY rev (1m)2.21%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)3.97%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)5.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.55 | ||
| Fwd PE | 41.84 | ||
| P/S | 3.58 | ||
| P/FCF | 101.52 | ||
| P/OCF | 73.2 | ||
| P/B | 19.93 | ||
| P/tB | 28.62 | ||
| EV/EBITDA | 41.02 |
EPS(TTM)5.28
EY1.5%
EPS(NY)8.4
Fwd EY2.39%
FCF(TTM)3.46
FCFY0.99%
OCF(TTM)4.8
OCFY1.37%
SpS98.07
BVpS17.63
TBVpS12.28
PEG (NY)1.25
PEG (5Y)1.38
Graham Number45.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROCE | 26.62% | ||
| ROIC | 21.33% | ||
| ROICexc | 23.67% | ||
| ROICexgc | 30.35% | ||
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% | ||
| FCFM | 3.53% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexgc growth 3Y31.4%
ROICexgc growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 94.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 15.59 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 55.56% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 7.71 |
F-Score7
WACC7.98%
ROIC/WACC2.67
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
Revenue Next Year26.48%
Revenue Next 2Y29.67%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
EBIT growth 1Y62.33%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year67.79%
EBIT Next 3Y43.39%
EBIT Next 5Y38.43%
FCF growth 1Y48.75%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y40.82%
OCF growth 3Y27.84%
OCF growth 5Y6.55%
CELESTICA INC / CLS FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to CLS.
What is the valuation status for CLS stock?
ChartMill assigns a valuation rating of 4 / 10 to CELESTICA INC (CLS). This can be considered as Fairly Valued.
How profitable is CELESTICA INC (CLS) stock?
CELESTICA INC (CLS) has a profitability rating of 8 / 10.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS) is 7 / 10.
Can you provide the expected EPS growth for CLS stock?
The Earnings per Share (EPS) of CELESTICA INC (CLS) is expected to grow by 53.05% in the next year.